About this Show

Varney Company

News/Business. Wall Street news. New.

NETWORK

DURATION
01:41:00

RATING

SCANNED IN
San Francisco, CA, USA

SOURCE
Comcast Cable

TUNER
Channel v761

VIDEO CODEC
mpeg2video

AUDIO CODEC
ac3

PIXEL WIDTH
1280

PIXEL HEIGHT
720

TOPIC FREQUENCY

Us 23, Irs 13, The Irs 9, Tesla 9, Spiriva 6, Detroit 6, California 4, Stuart 4, Washington 4, Michigan 4, Delta 4, Harvey Weinstein 3, Brown 3, Neil 3, Justin Timberlake 3, Chris Christie 3, America 3, U.s. 3, Nancy Pelosi 3, Obamacare 3,
Borrow a DVD
of this show
  FOX Business    Varney Company    News/Business.  
   Wall Street news. New.  

    May 14, 2013
    9:20 - 11:01am EDT  

9:20am
imus: mendy bayda, and we're coming up on the fox business network and time for stuart varney and "varney & company" and we'll continue on the radio 10:00 eastern. and the number to call 1-888-284-imus, 4 of-- 4687 spelled out. and "varney & company" is next. here is my friend, lyle lovett, an old chuck berry song, "brown eyed handsome man". ♪ ♪
9:21am
>> the scandals unfold. they get worse. now comes the financial impact. good morning, everyone, here is your tuesday morning scandal wrap-up. the top people at the irs knew about targeting conservatives a year ago and extended way beyond the cincinnati office. the white house says it didn't know. eric holder, justice department, secretly tapped the phone line, personal lines, cell phones included and the white house says it didn't know. the financial impact. the president's agenda of tax, spend and obamacare will be affected by these scandals and he must play defense with the hearings on investigations that are looming. his political clout takes a hit. "varney & company" about to begin. i'm so glad you called. thank you. we're not in london, are we? no. why? apparently my debit card is. what? i know. don't worry, we have cancelled your old card. great. thank you. in addition to us monitoring your accounts
9:22am
for unusual activity, you could also set up free account alerts. okay. [ female announcer ] at wells fargo we're working around the clock to help protect your money and financial information. here's your temporary card. welcome back. how was london? [ female announcer ] when people talk, great things happen. ...amelia... neil and buzz: for teaching us that you can't create the future... by clinging to the past. and with that: you're history. instead of looking behind... delta is looking beyond. 80 thousand of us investing billions... in everything from the best experiences below... to the finest comforts above. we're not simply saluting history... we're making it.
9:23am
>> all right. good morning, we're going to start with the irs, targeting conservatives during the the election. let's go back a ways to 2009 to a commencement speech that the
9:24am
president gave back then and joked about the irs, to audit arizona state university. listen to the president. >> it won't happen again. president crowe and the board of regents will soon learn about being audited by the irs. stuart: okay, it was a joke, but maybe the irs took him seriously. and last night, the president flew to new york city holding a fundraiser at harvey weinstein. maybe a million bucks plus raised. at the fundraiser, the president said it's the republicans who are being hyperpartisan and blocking his agenda. and the white house completely disavowed secret phone tapping by the ap and justice. and when the president--
9:25am
and called what happened in benghazi, a side show. none of this looks good for his administration and agenda. that's the running theme on "varney & company" today, scandal at the white house, president obama's agenda of the tax and spend looks a lot tougher of a sell. surely, this will affect your money shall the markets and the economy. oh, by the way, watch out, here comes tesla again. ♪ [ femalannouncer ] from more efficient payments. ♪ to more efficient pick-ups. ♪ wireless is limitless.
9:26am
visit us at marsco.com. no trading minimum. nohare limits. no inactivity fees. go to marsco.com to open your account today.
9:27am
$3.95 a ade. with fidelity's new options platform, making it easier to try filters and strategies... to get a list of equity option.. evaluate them with our p&l calculator... and execute faster with our more inttive trade ticket. i'm greg stevens and i helped create fidelity's options platform. it's one more innovative reason serious investors are choosing fidelity. now get 200 free trades when you open an account.
9:28am
[ female announcer ] from meeting customer needs... to meeng patient needs... ♪ to wireless is mitless...
9:29am
>> i've got to correct something, a moment ago i misspoke. the justice department collected secretly the records of a lot of phone lines used by ap journalist, i'm looking at a dead flat opening and i'm going first to chicago and here is tr tres. the white house cannot be good for the agenda? >> one of the reasons this market is looking up and seeing some economic recovery is because we've got gridlock in w apart from the sequester, discussion, a few months ago, you're not seeing a lot of hope and change coming out of d.c. that's exactly what the business community wants. as long as you've got gridlock and not changes, you're talking
9:30am
about the most powerful economic machine in the history of mankind with the u.s. economy. if you give them a level playing field you've got to be friendly. >> liberate the economy of the world by doing nothing in washington. >> please, please. >> oh, please. >> all right, the dow is beginning to ring its opening bell. as we said. we're looking for pretty much of a dead flat opening. we'retarting out from the 15,090 level and opened with a two point loss. there we go, no real movement thus far today. i want to bring in david is with us, ace economy watcher, same questions i've asked of tr tres knippa. i think they will have a scandal, what say you. >> i agree he with tres. you slow the agenda of change and you let the markets work. this is a wounded president now, and the duck will get lame over these scandals. stuart: good thing for the economy, make a judgment? >> yeah, because the
9:31am
interference would delay the recovery and we're going to slow it down and it's getting more robu robust. >> we're at 15,100 the dow gaining a little ground in the early going. is the big stock maybe the month, week, year. and tesla, today i believe it's above 90. is it the new apple a stock that goes up every single day until it doesn't? nicole, where did we open on tesla? >> let's take it down a notch. however, 96 bucks? i mean, are we talking about tesla here or what? >> 63%, this month of may alone, and now, like a god, and involved with solar city. now, solar city is running and we saw tesla with the first quarterly profit ever and that obviously is one of the many reasons we're seeing tesla on the run.
9:32am
near perfect score from consumer reports and the model x and here you go. now you've got 96 for tesla. stuart: you can't help compare until april, it goes straight up, it will it doesn't. the dow is opening up dead flat. and david is still with us, previously on this program, you said the stocks were cheap. okay? the dow is at 15,000, and tesla is going through the roof and are stocks still cheap? >> as long as the federal reserve keeps interest rates slow low, low, low, low, stocks go higher, assets go higher, real estate goes higher, asset classes have an interest rate near zero. >> a lot of economists we're seeing is raising the forecast for the growth of the economy. you're on board with that? >> i'm on board with the slow and gradually accelerating brat rate of growth. >> we do better and better, but
9:33am
slowly, stuart. i don't think it pops, it's not a robust spike. >> it's not a reagan recovery, you get 6% in a year, what do you think, maybe 3% next year? >> we could get to 3% next year and there's nothing wrong with the slow growth gradual acceleration, we don't have much inflation, it allows for covering the labor market. >> the obviously question, interest rates don't stay down unless ben keeps on printing and the market pays no attention to a 3% growth rate? >> ben keeps on printing, he's got janet yellen, bill dudley and half of them voting with them. as long as president obama is in office, that's where we are. recovery of rising interest rates, fast rising interest rates, not yet, not for a while. stuart: now, you're going to europe later this week, i think? >> milan tonight. and we've got a global
9:34am
independence center conference. >> you're speaking with fed people? >> prosser and rosen grant are keynoting. stuart: do you know what they're going to say. are they going to say, whether we like it or not, of ben keeps printing? >> and charles plosser is on the hawk side and he gave a speech in stockholm saying we've got to unline, stop it and slow down. he's in the minority. the majority doesn't want to stop. >> that's what you've got to watch. as long as he's got a majority, we keep printing. >> go, ben, go. >> travel safely. we'd like to see that. >> thanks, nice to see you. >> now, i've got coming up at 10:00 eastern, i've got two developments from california, the unions are trying to block the koch brothers from buying the l.a. times, to the barricades, boys, you can hear them saying it. you will not believe what the unions are saying about that potential takeover of that liberal bastion, the l.a. times.
9:35am
here is the second story from the formerly golden state, governor brown. there will be a budget surplus billions in the black. question, did tax the rich work in california. the dow is up 11 points now, okay? still pretty flat with a slight upward bias and no doubt the market was listening to david right there. and ripping the department of justice for secretly obtaining two month's worth of personal and work related phone records from the ap. here is the question, with their own under attack, how is the establishment media covering the story. media research center founder brent bozell joins us on the phone. have they stopped their unquestioning support of the president because of this issue, because they are under attack? >> a different way of looking at the world when the deal-- i've just been chuckling at this one because you know, there have
9:36am
been four years of overreach by in administration, four years of people not involved in journalism saying this was the administration that was drunk on power and evasive and dishonest and the media would have nothing of it, but bam, we just found out, they turned on the press as well. and suddenly they're apoplectic. stuart: well, i notice in the the times today there's an editorial which says, i quote, a bumbling response on talking points, that's about the benghazi scandal. so, and they call the president bumbling, i mean, there is hope yet. isn't there? >> it's what's happening, stuart and i think it's reached the point of things being indefensible, when the president states, as he did yesterday, repeatedly, that once again states that he did in fact call benghazi an act of terrorism, when in fact, he did no such
9:37am
thing and therefore, for the umpteenth time has lied about this to the american people. look on september 20th, eight days after benghazi he was asked point blank if it was a terrorist attack, he said he didn't know yet. so, when he does that over and over again, even the president are scratching their heads and the irs, an official says it's a low level person in cincinnati, when we know it's in washington. stuart: i'm almost out of time. do you know of any instance where the establishment media has used the word lie? have anybody in the establishment media said the president lied about benghazi or anything else? >> no, but we do hear that nbc says that it's a second year curse, and he's a victim. stuart: okay, one last one, i've only got 30 seconds. what would be the case if this was the bush administration doing all of these things. >> unequivocally nancy pelosi would be preparing articles of
9:38am
impeachment, unquestionably. stuart: thank you for taking that time out for a busy, busy day. >> thanks. stuart: back to nicole, blackberry headline, the new phone will hit the u.s. in early june. any response on the stock price? >> the stock was up 1 1/2% and traded as high as $16.14 a share and has since pulled back and actually moved into negative territory, but, we are getting the headlines that in early june you'll be able to get the q-10 and the ceo talked to you about the fact that the launch is a successful year for them and is on solid ground and talked that the q-5 device, for emerging markets and this will be in multiple colors, also available this summer so they have a slew of products they're rolling out in the next several months. >> it's at 15 and staying there at this moment. thank you. the dow is up 25 points now, let's move on to 7 early movers this tuesday morning, better than expected profit at the game maker, that would be take 2
9:39am
interactive and the market likes that, that stock is up 4%. higher profits at boeing's rival, euro pe-- and boeing right on the cusp. $95 a share ann mcdonald's introducing new quarter pounders to replace the angus third after pounder and mcdonald's at right at $100 a share. don't forget microsoft, i own that, $33 a share today. retirement here i come. and u.s. appeals court says that nintendo can keep importing the popular wii system into the united states and no movement for the stock. disappointing results for the solar panel installer, that's solar city. down 5%. to the big board, we're up. 15,115. time is money, and 30 seconds worth of what else we've got for you, three obamacare headlines
9:40am
actually coming up in the next hour, number one are the irs will be obamacare watch dog, hoping that you will-- that you-- hitting you with a tax for not having health insurance. does the current irs scandal put the law in jeopardy? >> very good question. number two, wait until you hear what nancy pelosi is saying about obamacare now. does the constitution say that health insurance is a right? number three, senator john barrasso responds to the headlines from the irs and how that will affect obamacare. 10:45 this morning and one more obamacare headline next, health premiums are about to skyrocket. how much are they going to go up and what is going to be done about it? we'll deal with it next. (announcer) scottrade knowour clients trade and invest their own way. with scottrade's smart text, i can quickly understand my charts, and spend more time trading.
9:41am
their quick trade bar lets my account follow me online so i can react in real-time. plus, my local scottrade office is there to help. because they know i don't trade like everybobody. i trade like me. i'm with scottrade. (announcer) scottrad voted "best investment services company." if you've got it, you know how hard it can be to breathe and man, you know how that feels. copd includes emphysema and chronic bronchitis. spiriva is a once-daily inhaled copd maintenance treatment that helps open my obstructed airways for a full 24 hours. you know, spiriva helps me breathe easier. spiriva handihaler tiotropium bromide inhalation powder does not replace fast-acting inhalers for sudden symptoms. tell your doctor if you have kidney problems, glaucoma, trouble urinating, or an enlarged prostate. these may worsen with spiriva. discuss all medicines you take, even eye drops. stop taking spiriva and seek immediate medical help
9:42am
if your breathing suddenly worse, your throat orongue swells, you get hives, vision changes or eye pain, or problems passing urine. other side effects include dry mouth and constipation. nothing can reverse co. spiriva helps me breathe better. does breathing with copd weigh you down? don't wait to ask your doctor about spiriva.
9:43am
9:44am
>> this is a very, very modest
9:45am
gain, 22 points higher, but we're at 15,100 right there. new reports from the house, energy, and commerce committee reveal that obamacare, the affordable care act. not so affordable at all. premiums could rise anywhere from 100 to 400%. now, this is for individuals. millions of people who buy their own insurance personally. congressman mike burgess, part of the committee that released that report. congressman, i believe that you're a medical doctor, ob-gyn. can you tell me on what basis the health insurance premiums are going up so much? >> thank you for having me on. trying to get information on department of health and human services on what was going to happen with rates was a lost cause. they weren't replying to us, so we went to the industry themselves and said being looks being how are you preparing next year, and after a series of letters, they graciously replied and it's redacted to company, but available on the energy and
9:46am
commerce website, and 100 increases in the individual market and when the small karen acted these were individuals supposed to be helped by the law and the president says if you like what you have you can keep it, but he should have added you're going to have to pay up. stuart: people can't afford that increase, at least a doubling in what they have to pay if they're buying the stuff individually. they won't be able to buy it they'll be kicked into the public system, medicaid or go to the exchanges which are heavily subsidized which means for expense for the taxpayer? >> and of course, that's the administration's counterpart to this, that oh, you're not taking into account the generous subsidies available to people who are 400% of the poverty level. when has a massive infusion of federal dollars actually brought prices down. did it happen in students loans? did it happen in the housing
9:47am
market? it's not the going to happen in this market either and costs are going to continue to go up. the only person who is, in fact, benefitted by this that i can see, would be the secretary of department health and human services because she holds enormous power not only of the medicare and medicaid part of the health care space, but also the private insurers as well for the first time they're now regulated by the federal government. >> now, the president is embroiled in at least three scandals at this point and i believe he's losing political momentum and short on political cash amount. do you think it's a serious enough situation for the president to have an effect on obamacare, that it might hold it up, or in some way, unravel it, do you think? >> well, this has been my thesis for several months. the federal hub shall the federal exchange computer piece ready for october 1st he, i don't think they can do it. the funding for implementation for furtherance of the
9:48am
affordable care act, we're coming to a point where the credibility of the administration is low and the price tag is exceedingly high and people will look at this, you've had three years, billions of dollars, nowhere need ready why should we invest one more dime in this. stuart: could the implementat n implementation, we can't do it on october the 1st, january the 1st, give us another year, is that possible? >> i'll give them 25 years if they logged it. but the reality you're going to hear things like that, you're going to hear things like we need to narrow the focus of the president's health care law, we're not going to take care of as many people right off as we said. i think these are things you're going to see creep into the discussion, but for my money, october 1st is a critical date, it's a new fiscal year, they're stealing it from the prevention fund as we speak. they're-- the secretary is going to these
9:49am
insurance companies and saying, you better give some money to enroll america because i need this to get, i need this to get this thing accomplished because that darned congress won't give me money and the administration has lost so much credibility the last four or five days, it's going to be difficult to maintain the momentum to get it done. i don't see it. stuart: thank you very much for being with us, dr. mike burgess, republican, texas. >> thank you. stuart: time for your gold report. where is it on a day like this, 1430, down 4 bucks at thii moment. near liberal elitist fundraiser for president obama in new york city. and producer harvey weinstein, justin timberlake, tommy hilfiger and would have thought the obama fever would have ended after his reelection. and charles payne is here and he's fired up about this latest thing. he's next. we went out and asked people a simple question:
9:50am
9:51am
how old is the oldest person you've known? we gave people a sticker and had them show us. we learned a lot of us have known someone who's lived well into their 90s. and that's a great thing. but even though we're living longer, one thing that hasn't changed much is the official retirement age. ♪ t question is how do you make sure you have the money you need to enjoy all of these years. ♪
9:52am
9:53am
>> president obama said that rush limbaugh is to blame for the gridlock in washington. he said that at the a fun razr at harvey weinstein's house. justin timberlake, jessica biel were among the attendees. he told the win in 2012 would
9:54am
break the fever. and $32,400 per couple for the the event. so, charles, it's all rush's fault, is it? >> rush must feel good, he has more juice than justin timberlake and jessica biel and all the couples to fork over $32 grand to have dinner with the president. here is the real deal and speaks to the president and he thinks he knows everything and he's 100% right on everything and sooner or later people, if you don't come around to him, you're suffering. you're actually dilutional, suffering from something he calls a fever and that perhaps if we beat you enough, if we beat you a second time, you'll have an epiphany and come out of your fever and see i'm right. stuart: on the very day, don't know anything about the irs scandal, don't know anything about the justice department knocking into the phones of the ap reporters and benghazi, a side note. and he accuses the republican of
9:55am
being hyper partisan. that's a juxtaposition. charles: it goes beyond hubris and chutzpa, to use the word cooperation, i don't see where the president makes an effort at bipartisanship and this is the saddest part of his legacy, the inability to bring people together. beneath the surface that's not said and alludes to almost every press conference, they don't like him because he's black and that lingers because he's-- >> really? i don't detect that. >> every time he speaks, i hear. stuart: and much more on the scandal plaguing the administration. and new on "varney & company," judge napolitano weighing in on the doj scandal and what does the irs do to obamacare, buckle up, we're in for a bumpy ride as they say. we're about to get started. en,
9:56am
whicwould be fine if bob were a vampire. but he's not. ♪ he's an architect with two kids and a mortgage. luily, he found someone who gave him a fre perspective on hisortfolio. and with some planning and effort, hopefully bob can retire at a more appropriate age. it's not rocket science. it's just common sense. from td ameritrade. it's just common sense. always go the extra mile. to treat my low testosterone, i did my research. my doctor and i went with axiron, the only underarm low t treatment. axironan restore t levels to normal in about 2 weeks in most men. axiron is not for use in women or anyone younger than 18 or men with prostate or breast cancer. women, especially those who are or who may become pregnant and children should avoid contact where axiron is applied as uneected signs of puberty in children or changes in body hair or increased acne in women may occur. report these symptoms to your doctor. tell your doctor about all
9:57am
medical conditns and meditions. serious side effects could include increased risk of prostate cancer; worsening prostate symptoms; decreased sperm count; ankle, feet or body swelling; enlarg or painful breasts; problems breathing while sleeping; d blood clots in the legs. common side effects include skin redness or irritation where applied, increased red blood cell count, headache, diarrhea, vomiting, and increase in psa. ask your doctor about e only underarm low t treatment, axiron. ...amelia... neil and buzz: for teaching us that you can't create the future... by clinging to the past. and with that: you're history. instead of looking behind... delta is looking beyond. 80 thousand of us investing billions... in everythg from the best experiences below... to the finest comforts above. we're not simply saluting history... we're making it.
9:58am
all stations come over to mithis is for real ts time. step seven point two one two. rify and lock. command is locked. five seconds. three, two, one. standing by for capture. the most innovative software on the planet... dragon is captured. is connecting today's leading companies to places beyond it. siemens. answers.
9:59am
stuart: tuesday, may 14. good morning, california. you are waking up to eight tax the rich policy that appears to have worked. at least for now. the irs scandal hits obamacare. will it kill it? bloomberg versus baaack obama.
10:00am
round two. "varney & company" begins now. ♪ stuart: yet again that outbreak story of the day is this, the department of justice secretly updated months of phone records. the leak harmed a cia operation. it wanted to find out where the leak came from. they got those phone records. is that legal? how much freedom are we able to give up for so-called security? judge andrew napolitano is here. a slippery slope.
10:01am
did the justice department get a warrant from a judge to go get those records? >> well, we do not know, but we assumed by statements made that they use the patriot act authority which allows authorities to write their own search warrants as british soldiers were able to do prior to the american revolution -- stuart: yes, yes, yes. >> it directly contradicts the fourth amendment. they do not go to a judge, they do not present evidence of probable cause. agent a authorized agent be to do it. they show up within agent written search warrant. they serve it on the telephone
10:02am
company and the telephone company says, here are all the bills, telephone calls made and telephone calls received. stuart: could you make the case? it reaches the constitutional principle. >> yes. stuart: could you make a pragmatic case that the government needed this? they could detect where the leak was from and plugged it. >> you could not make the argument for constitutional reasons. you could not even make it for practical reasons. the original ap story about that activity in yemen did not name specific sources or individuals.
10:03am
it will just give them thousands of people with whom ap reporters spoke. i would not know about it. in fact, none of us would know about it. unless the government prosecutes someone come up we do not know how broad they are. stuart: the guy who runs a piece found out about it and complained. >> the government is on a criminal prosecution. someone stole information from the government and gave it to a reporter. under supreme court law, it is lawful and the reporter is immune from any liability, harassment or criminal prosecution for publiihing it.
10:04am
that does not resolve the thief. probably a person in the government is the subject of a criminal prosecution. the fourth amendment says when the government wants information, like telephone records, it has to go to a judge and present probable evidence. on the basis of what we know is clearly wrong. the statute ii clearly unconstitutional. stuart: hold on for a second, judge. bloomberg got though white house a taste of its own snooping medicine. reporters may, repeat, may, have snooped on white house officials that use those bloomberg data
10:05am
terminals. peter barnes is the guy who broke that story and joins us now. they may have. they were in a position to, but we do not know whether they did or not. peter: that is accurate, stuart. there were dozens, are dozens of contacts between that consecutive office of the president and bloomberg. thirty-eight contacts. stuart: it is possible that those reporters could have retracted the movement of those white house officials, at the very least, they could have. information, informationontact
10:06am
nonetheless. stuart: peter barnes, you broke the story and we appreciate you. judge napolitano is still with us. it seems to me that bloomberg must establish a firewall. >> absolutely. at minimum. the fourth amendment only governs the government. i am talking about the corporation that bears his name. if people in that corporation snooped, they violate federal privacy laws. they do not violate the fourth amendment because it does not cover them. the white house should have known that by employing this bloomberg software and literally bringing it into the white
10:07am
house, it was telling bloomberg what use it was putting the software to. stuart: is there a complete separation between mike bloomberg, mayor of new york and founder of the bloomberg media and the empire itself? >> he has stated so and i have no reason to dow him on that. i believe that this is in a blind trust waiting for him to receive back at the end of his term. stuart: he only has to pick up his phone and call his chief executive. i am not suggesting that. >> there are suggestions that this started when he started the company. stuart: what a mess. >> yes, it is a mess.
10:08am
stuart: you know -- [ laughter ] stuart: i was about to apologize. in the past use that the slippery slope argument is irrelevant. now, i found out that it is not relevant. >> i appreciate you saying that. many of these hard work journalists wanted the patriot act. stuart: president obama opposed it. >> now he uses it. stuart: might have times have changed. judge, thank you. checked the big board today. to nicole petallides. i want to start with tesla. nicole: it is unbelievable. it went up to 97.12 today.
10:09am
getting closer and closer to $100. they got added bump in sales from california. they felt only electric vehicles. they do not even have tailpipe cars. they are benefiting greatly from that. stuart: is google getting close to 900? nicole: well, you know, the analysts were calling for 900. stuart: i am talking microsoft. i think it is up again today. nicole: all right. you have an up arrow there. i cannot get over this tesla story. i have never seen an electric car. i have never seen a plug-in car.
10:10am
all i do is report about them. stuart: i noticed you dismissed microsoft in about one sentence. you go to the garden state plaza mall in new jersey and they have a show room there are. charles: they have a show room there. i actually came in and did a hit. the amount of people in there reminded them of apple stores. that was two days after the "new york times" said it was a bad investment. stuart: it was driving. charles: it looks pretty good. stuart: unions do not like the idea of the coke brothers possibly buying the l.a. times. today they will protest outside
10:11am
the largest shareholder in the tribune company which owns the times. they also sent a letter. it is not consistent. you have to laugh. i am laughing, but it is not funny. what exactly are the values of los angeles that conflict so much with people who have made a lot of money. >> i think it is the fear. there is this huge fear that is suddenly the coke brothers, and it will be the end of journalism as we know it. they did in our internal paul and half of them raised their
10:12am
hands and said yes, if the coke brothers by this thing and i am quitting and moving in with alec baldwin. stuart: is it just an enclave of los angeles? >> no. you are getting it from the senate and the assembly leadership. you have three city councilman and los angeles. the next mayor made threats that if the coke brothers decide to go ahead and buy, by the way, they are protesting a rumor. there is nothing official. they are protesting this rumor and they are saying if they buy, then maybe they will divest any holdings that we have in the companies that do business with the coke brothers. stuart: i have to get to the next point. governor brown will have a revised budget. it took him $4 billion more than
10:13am
expected. that gives him a surplus. that money came, i believe, from taxing the rich. >> yes. the vast majority of that revenue that has suddenly popped up in somebody's pants pocket is mostly from the year and dividend buyouts with a lot of wealthy californian to decided with the end of the bush tax cuts, as they know it it was better to cash out those tax dividends. there will be a big stromal between democrats and legislature. it will be there every single year. what they would like to do is refill some of the cuts that were made.
10:14am
it is part of the dna. stuart: thank you as always for joining us. if you thought the irs already had too much power, get ready. obamacare gives it even more control over your money. nancy pull lowly is at it again. >> we have to pass the bill so that you can find out what is and it away from the fog of the controversy. [ kitt ] you know what's impressive?
10:15am
a talking car. but i'll tell you what impresses me. a talking train. this ge locomotive can tell you exactly where it is, what it's carrying, while using less fuel. delivering whatever the world needs, when it needs it. ♪ after all, wh's the point of talking if you don't have something important to say? ♪
10:16am
♪ stuart: hedge fund manager calling for sony to separate the divisions. daniel low. he owns about 6% of sony shares and he says the move would bring more cash to the electronics department. the stock is up nicely, 10%. sharp will produce more supply for apple and its rival samsung. mcdonald's rolling out three new quarter pounders to replace the angus burger. it is due to rising beef prices. scandals rocking the affordable care act.
10:17am
♪ light. [ goodall ] i think the most amazing thing is how like us these chimpanzees are. [ laughing ] [ won ] can you hear me? and you hear your voice? oh, it's exciting! [ man ] touchdown confirmed. we're safe on mars. [ cheers and applause ] ♪ hi. [ baby fussing ] ♪
10:18am
we don't let frequent heartburn come between us and what we love. if you're onef them people who gets heartburn and then treats day afr day... block the acid with prilosec otc and don't get heartburn in the first place! [ male announcer ] e pill eachmorning. 24 hours. zero heartbur ♪ stuart: the pentagon is looking for ways to work around the mandatory sequester cuts. the department is looking for ways to exempt more people from unpaid days off. they are working around the sky falling sequester. the irs will be the watchdog for obamacare. will the scandal hit the wall
10:19am
hard enough to kill it? wait a second, i have to have you spell out the connection between the irs scandal and obamacare. >> many people will be worried about joining those health insurance exchanges which opened october 1. now, under this law, your doctor has to enter your medical treatment or history and all your insurance information will be in there. all the treatments you get that are covered by your insurance. the irs is enforcing all of this. when you go to pay your taxes, you have to attach proof that you are on a qualified plan and you are paying the right amount.
10:20am
the irs will have access to everything about your health insurance. if the irs does not respect your political privacy, who is to say they will respect your medical privacy. surely, it is not rigid and obamacare, the law. the irs can just leap over that wall and look at your personal medical history. >> what law? what law, stuart? he was talking about gun control and getting into your medical records for background checks. the secretary has proposed entitling you to get a list after the fact of posting your medical records. that is too late. stuart: you are saying there is no restriction on the irs just plugging into my personal --
10:21am
>> they have all the details about your health insurance. stuart: i have insurance. >> you have to report to them you're out of pocket expenses. they are supposed to guard you from spending too much on healthcare. stuart: but that does not let them into my history. >> no, but it does let them know who your health insurance carrier is. what is to prevent them from doing the same thing. people will look at this and say here is the irs lying about what they did here what will they do to me? stuart: nancy pelosi. she famously said we need to pass obamacare to see what is in
10:22am
it. over the weekend, she gave us another reason to support obamacare. life, a healthier life. liberty, the freedom to pursue your happiness. >> big brother watching every aspect of your health care. >> i think young people will be very reluctant to enroll. stuart: it is scandal tuesday. it will have an impact on your money. the economy, too. my take on that after this. ♪ in today's markets, a lot can happen in a second. with fidelity's guaranteed one-second trade execution,
10:23am
we route your order to up to 75 market centers to look for the best possible price -- mae even better than you eected. it's all part of our goal to execute your trade in one second. i'm derrick chan of fidelity investments. our one-second trade execution is one more innovative reason serious investors are choosing fidelity. now get 200 free trades when you open an account. can youlyric can.aid do this? lyric can. lyric can. lyriby phonak is the world's only 24/7, 100% invisible hearing device. it's tiny. but lyric's not just about what you can't see. it's about what it can do. lyric can be worn 24/7 for up to four months, without battery changes. incredibly easy live with, lyric can be worn showering, sleeping and exercising. in fact, you might forget it's there at all. call for a risk--free trial. and you'll see lyric can also give you exceptionally clear,
10:24am
natural sound in quiet and noisy environments because of how it works with your ear's own anatomy. (testimonial section) (testimonial section) (testimonial section) (testimonial section) did you know, 94% of people who use lyric would recommend lyric to a friend or loved one. can your hearing aid do all this?
10:25am
lyric can. to learn me about lyric's advanced technology, call or visit trylyric.com for a risk--free 30--day trial offer. you'll also get a free informational dvd and brochure. why wait? hear today what a little lyric can do for you. get the hearing aid that can. lyric from phonak. lyric can.
10:26am
♪ stuart: look at this, please. that is prince harry in new jersey. he is inspecting damage at the jersey shore. prince harry is second in the line for the throne currently. he is with governor chris christie. i am not sure i can see which one governor chris christie is. i am interested to see him since he had that stomach shrinking
10:27am
operation. there you have it, prince harry and chris christie in new jersey together. time for charles to make some money. he still likes monster beverage. charles: i have to tell you something. this stock could end up being one of those tesla ring mountains. you have a few issues. stuart: everyone is chasing them down. there was an issue for the cigarette companies. beyond that problem, execution has been there big problem. the last four quarters, they have missed the street each quarter. they have been able to overtake red bull.
10:28am
i give them a lot of credit for that. their execution has been her read this. they still continue to take market share in an industry and space that is going a lot faster than carbonated drinks. just like a cup of coffee. i can say that more people will die from drinking carbonated, sugary drinks and drinking monster drinks for the next 200 years. i think it can go to 70. stuart: environmentalists love windfarm. alternative energy. that is what it is. we have a perfect case of hypocrisy for you.
10:29am
we are told that the obama scandal is all politics. they have no financial impact. you and your money will sail on. i think that is wishful thinking on the part of the left. i think policy will be affected and perhaps, america will win. benghazi. three scandals. the president appears to have misled the country or he is an incompetent manager. this cost him time and clinical capital. just look into the very near future. he has to come to terms with congress on a budget all in six months. all the time, he is trying to do
10:30am
this, there will be a series of congressional hearings and investigations. it takes time to get your stories straight. yes, he won the election. during his campaign, the irs harassed his opponents. these scandals will bite into his economic agenda. in my opinion, that is a good thing. i, for one, has had enough. democrats will be thinking long and hard about how close they want to get to a president tainted by scandal. if they fail to regain control of the house, the obama campaign is a non-starter for the rest of his term. they will have financial impact. i do not think there is much chance for another tax hike on success. there is a good chance that obamacare can be stopped and maybe even rolled back.
10:31am
the ideology will be defeated next year. all good. thank you orville and wilbur... ...amelia... neil and buzz: foteaching us that you can't create the future... by clinging to the past. and with that: you're history. instead of looking behind... delta is looking beyond. 80 thousand of us investing billions... in everything from the best experiences below... to the finest comforts above. we're not simply saluting history... we're making it. ♪
10:32am
(train horn) vo: wherever our trains go, the economy comes to life. norfolk southern. one line, infinite possibilities.
10:33am
10:34am
♪ stated they say detroit is in -- they are literally weeks away from totally running out of all
10:35am
cash. a report out monday shows $15 billion in debt. a growing deficit plus those unfunded pensions. where will the money come from to save this city? they need it fast. a frequent guest on this program. thank you very much for coming back to us. where is the money coming from? they will have to have money within the next few weeks. >> you may be talking to the wrong guy. i am sure plenty of people are in line for a haircut all around. i wanted to talk to about why detroit and other cities are failing. stuart: you have to have an opinion on this.
10:36am
>> my opinion is that detroit defined michigan. stuart: there are only two choices here. they have to have money or they just totally shut down. everything shuts down totally. there is only two choices. >> i think that the governor has to step up. i think that this city has to be committed to a long-term plan. stuart: are you prepared to see money from your city go to detroit? >> no. we cannot afford it. again, i think a lot of folks are in line for a haircut. i think it will have to be shared sacrifice. our cities are failing by
10:37am
design. we have many cities that are headed towards bankruptcy. it is not just the governors ball. i am telling you, we have failure by design because we are operating on game plan. our system in michigan is based on the northwest ordinance with president washington. our founding fathers did a nice job -- stuart: is it the pensions? is that the big deal? stuart: you know i will not lie to you. i believe we have been a little overgenerous. a lot of cities and townships have done that. that is one element. reality is, we are based on a township form of government which is six by six. stuart: i take your point, your
10:38am
honor, but it has to change. you have to weeks to get money to detroit. my plea is let's stop with the one-time fixes in emergency manager alone will not fix what is wrong with detroit. we have to get beyond surviving. our young people want to move to thriving cities. we do not have them in michigan. we are losing population because we have allowed our natural regions to decade. we have to find a way to have functioning natural regions like they have done in nashville and you louisville and other capital cities. charles: you would be for lower taxes, progrowth policies, incentives to get businesses to invest? >> well, what i am talking about
10:39am
is thriving metro regions. in columbus, they just voted to raise their income tax. if you look it up ann find out what kind of mayor i have been, we are very pro-business. some of the highest wage areas are not the lowest tax areas. the fact is, it does take taxes to provide good services. people want to move where there are quality services. i am not just for less government across the board. stuart: you will have to do it. no way around it. will you have to cut it again? >> we may. i do not think there is any question about that.
10:40am
i have admitted to you, i think the cities have probably been overgenerous in that regard. in michigan, we have a problem with the way that the government is structured. a lot of the cities that we are talking about, some of the fastest growing cities in the cities that are attracting young people, including our young people are cities like chicago and new york. we need to be lean, we need to be sufficient. we need services. we need to invest in infrastructure. almost everything runs by computer today. stuart: that is just another word for spend. >> i know that you guys get offended.
10:41am
>> you are spending money that you do not have. >> we are grounded in facts and we are grounded in reality. it takes taxes and dollars. stuart: people will not pay it. >> you are wrong. they will pay for it. they voted to tax themselves more to keep those services. we are on the front lines. you are not talking to some politician. when people call 911 -- we have to answer those calls. the people who vote for more taxes are not the ones who pay more taxes. that is true. >> it is not true. it is not true at the city level. you do not know what you are talking about it. stuart: okay. thank you for joining us.
10:42am
>> it was good. stuart: we cannot get the story enough. the irs, epartment of justice, obamacare. we had to capitol hill after this the local
10:43am
10:44am
stuart: a small incremental movement higher for the price of gasoline. look where we are now. 3.584 regular. up about a nickel in a week. could tesla be the new apple? the electric car company still climbing after raising its profits. shares right around $90 a share. blackberry chief justin out the new q10 smart phone. it will be released early next month. shares of library down a little. how about taco bell. the fast food chain is testing a waffle shall. it is $0.89. back in a moment.
10:45am
♪ ome on todd! flap them chicken wings. [ grunts ] well, i travel a lot and umm... [ male announcer ] at visa signature, every upgradedxperience comes from listening to our cardholders. visa signature. your idea of what a card should be. visa signature. are you still sleeping? just wanted to check and make sure that we were on schedule. the first technology of its kind... mom and dad, i have greaeat new. is now providing answers families need. siemens. answers.
10:46am
stuart: we will call this the horse race stock trade of the day. that would be google which is getting closer to $900 a share. nicole: 888.69. twelve, $13 away from google 900. it is pretty unbelievable. about 25% this year. it has been pushing slow and steady.
10:47am
that is the horse race of the day. the two stocks going at it. you are seeing tesla up 2.3%. stuart: thank you, nicole. let's get to charles who is going to try to make you some money. we have an led lighting maker. charles: it got hit this morning. they downgraded to a neutral. it is kind of a. thing. i am hearing lazzara bikes to go to 73. the company has to work with the channel. they think this thing will really take off. by the way, starting to see commercials now on tv.
10:48am
it is pretty interesting. stuart: you think it is going to 70, 65? charles: i think it will go substantially higher than this. stuart: they will replace all the lighting. the scandal at the irs. the scandal at the justice department. the scandal over benghazi. i want to zero in on obamacare. we have a senator here. is it possible that these scandals are so serious that it will take up so much time for the president that it will
10:49am
interfere with the implementation of obamacare? >> it is the drip, drip, drip of new information that continues to come out. you are right, it is the irs. they are the ones who will be called on to implement the president's health care law. the train wreck coming with all the different exchanges and trying to buy insurance that way. when people apply to the exchanges, it does not go to a healthcare person. the questions go to the irs. the irs is talking about hiring maybe 10,000 more agents to look into your lives. now, we know what they have done already. we will learn more. i think it will call into question their ability to implement the health care law. stuart: would you say that the implementation could be at least delayed? >> i think it will be a disaster
10:50am
anyway you look at it. i see a train wreck coming with the president's health care law. i cannot imagine that they will be ready to implement it. remember what the president said in his press conference yesterday. if we learn it is true, the things we learn to be true friday, we now know go way beyond that with new information coming out today. it is much more involved. stuart: what do you make of the doj scandal? they went and got the phone records. they used the patriot act to go in and get that information. >> it is dramatic. it is unprecedented. i used to think that the attorney general is incompetent. this looks to be malicious. the scope of it is so large.
10:51am
you have the administration subpoena in phone records from the capitol building itself. this goes way beyond anything i think anyone has seen before. we are just seeing the tip of the iceberg. stuart: thank you very much. >> thank you for having me. the future of energy in america. here is a problem, those turbines are killing federally protected birds and they are getting a pass on it. we will deal with it next. ♪ us. we learned a lot of us have known someone who's lived well into their 90s. and that's a great thing. but even though we're living longer, one thing that hasn't changed much is the official retirement age. ♪ the question is how do you make sure you have the money you need to enjoy all of these years. ♪
10:52am
[ agent smith ] i've found software that intrigues me. it appears it's an agent of good. ♪ [ agent smith ] ge software connects patients to nurses to the right machines while dramatical reducing waiting time. [ telephone ringing ] now a waiting room is just a room.
10:53am
[ static warbles ]
10:54am
10:55am
♪ stuart: look at this please. of 81 points. gradually higher alter the morning. the dow closing on 15,002. the obama administration has used against oil and power companies. however, about once a month a golden eagle is killed by a wind turbine. charles, it seems that there is no complaint if an eagle gets killed in a wind farm, but all hell breaks loose if it gets killed with oil. charles: that was just in one
10:56am
year. think about this, we shut down an entire industry over the spotted owl. thousands and thousands of americans lost their jobs to preserve the spotted owl. it will probably be extinct anyway. the larger cousin keeps killing them and taking over the territory. birds will die, there is no dow about that, no matter what we do, but there is hypocrisy and windfarms to get a free pass. stuart: more "varney & company" comes after this. ♪
10:57am
thank you orville and wilbur... ...amelia... neil and buzz: for teaching us that you can't create the future... by clinging to the past. and with that: you're history. instead of looking behind... delta is looking beyond. 80 thousand of us investing billions... in everything from the best experiences below... to the finest comforts above. we're not simply saluting history... we're making it. [ whirring ] [ dog barks ] i want to treat mo dogs. ♪ our business needs more cases. [ male announcer ] where do you want to take your business? i need help selling art. [ male announcer ] from broadband to web hosting to mobile apps, small business solutions from at&t have the security you need to get you there. call us. we can show you how at&t solutions can help you do what you do... even better.
10:58am
♪ the wright brothers became the first in flight. [ goodall ] i think thmost amazing thing is how like us these chimpanzees are. [ laughing ] [ woman ] can you hear me? and you hear your voice? oh, it's exciting! [ man ] touchdown confirmed. we're safe on mars. [ cheers and applause ] ♪ hi. [ baby fussing ] ♪ the at all. the new york post reports reaching new york moms are hiring handicapped tour guides to pose as family members so kids don't have to wait at line at disney. black-market guys take up $100
10:59am
for a eight hour shift. our producer charles, whose name is justin is outraged. this is a terrible thing he says. i am not outraged at all. charles: tte story is in the post and they begin saying the 1% are 100% despicable. i you kidding me? the ideas at the handicapped being camped. for $1,000 for one day? for disabled people of watchingo the show probably will flood our phones to get in touch with this. an amazing opportunity. stuart: $1,000 to go to disney. , you get is your kids don't stand in line. what is your name again? you are totally wrong. dagen mcdowell, connell mcshane. connell: good morning, i am connell mcshane. the i am dagen mcdowell. constitution die-hards up in arms. justice department secrets like
11:00am
all of ap phone records, a matter of national security or plane abuse of civil liberties. connell: the irs catching the same amount of heat, congress jobbing at the bit, who was targeted by the government agency and while. dagen: a high cost associated with angelina jolie's life decision, who should follow her lead and who should not? the connell: jack is back. want to make headlines from the network of front? fox resurrecting the big money-making series 24. jack our making a come back. those stories and more on markets now. >> if not successful lose your younger son. >> copy that. >> we are go. connell: you must have been. i was a big 24 and. dagen: initially. no.

Terms of Use (10 Mar 2001)